The adjusted trial balance of Deakin Ltd as at 30 June 2020 is given below. Deakin made a profit of $2500 for the year.

Required:

a) Prepare Deakin Ltds Statement of Changes in Equity for the year ended 30 June 2020.

b) Prepare Deakin Ltds Statement of financial position at 30 June 2020

c) (i) Calculate Deakin Ltds Current ratio and the Debt-to-total assets ratio at 30 June 2020. (Round off the answers to the nearest 2 decimal places). (ii) Explain your Current ratio and how it reflects on the companys ability to meet its obligations.

d) (i) The profit margin for Deakin Ltd for 2019 and 2020 were 21% and 26% respectively. Interpret the meaning of profit margin for 2020. (ii) Comment on the profitability trends of Deakin Ltd from 2019 to 2020.

Deakin Ltd Adjusted trial balance 30 June 2020 Debit $ Credit $ Cash at Bank 7400 Accounts Receivable 3200 2800 16 000 Office Supplies Office Equipment Accumulated Depreciation - Office equipment Accounts Payable 6000 3000 Unearned Revenue 2000 11 0001 Share Capital Retained Earnings 6900 Dividends Paid 2000 9000 1100 Service Revenue Office Supplies Expense Depreciation Expense Equipment Rent Expense 3000 2400 37 900 37 900

Answer rating: 100% (QA)

The Answer is in the image, click to view ... View the full answer